OpenAI is building a new AI data center north of Dallas, and the numbers tied to the project are raising eyebrows across Texas. The facility, located in Denton, is set to consume around 390 megawatts of electricity, nearly twice the city’s current power usage.
Denton, home to just under 160,000 residents and two major universities, isn’t new to growth. But this level of energy demand is something local officials are scrambling to manage. By 2030, the OpenAI site could outpace the city’s entire energy footprint, forcing grid upgrades and possibly driving up electricity bills for everyday residents if supply falls behind.
Altman is also tied to the federal Stargate initiative, a $500 billion push to fund large-scale AI facilities. The program’s first site, operated by Oracle, is already active in Texas and dwarfs Denton’s facility with a massive 1.2-gigawatt load, enough to power hundreds of thousands of homes.
While OpenAI will use the Denton site, it doesn’t technically own it. The facility belongs to Core Scientific, a former bitcoin mining firm now pivoting toward AI infrastructure. That company is being acquired by CoreWeave, another AI data center provider, in a $9 billion deal announced last week. When the dust settles, CoreWeave will control the Denton hub.
Cooling these facilities also demands vast amounts of water. In a region where drought conditions are worsening, and water supply is increasingly stretched, that adds another layer of strain. The Texas Tribune reports that local ecosystems may face added pressure as more cooling systems come online.
Community Impact Still Unclear
Though no immediate health risks have been confirmed, some Texas towns near industrial computing sites have reported unusual symptoms in recent years. One bitcoin mine in particular drew complaints from nearby residents. Experts say more research is needed before drawing conclusions, but the pattern is being watched.
With OpenAI’s latest move, the company joins a broader trend of tech firms racing to scale. What’s less clear is how that race will affect the communities left sharing their power lines.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
Read next: Google Signals Big Changes as Android and Chrome OS Begin to Converge
Denton, home to just under 160,000 residents and two major universities, isn’t new to growth. But this level of energy demand is something local officials are scrambling to manage. By 2030, the OpenAI site could outpace the city’s entire energy footprint, forcing grid upgrades and possibly driving up electricity bills for everyday residents if supply falls behind.
An AI Boom Demands Real Power
OpenAI says the data center will help keep services like ChatGPT and its developer tools online 24/7. Earlier this year, the company had to delay major feature rollouts due to limited computing power. That shortfall seems to have accelerated plans for larger infrastructure, with CEO Sam Altman closely involved in expanding capacity.Altman is also tied to the federal Stargate initiative, a $500 billion push to fund large-scale AI facilities. The program’s first site, operated by Oracle, is already active in Texas and dwarfs Denton’s facility with a massive 1.2-gigawatt load, enough to power hundreds of thousands of homes.
While OpenAI will use the Denton site, it doesn’t technically own it. The facility belongs to Core Scientific, a former bitcoin mining firm now pivoting toward AI infrastructure. That company is being acquired by CoreWeave, another AI data center provider, in a $9 billion deal announced last week. When the dust settles, CoreWeave will control the Denton hub.
Grid Tension and Water Worries
Texas has seen a wave of data center expansion lately, and not without consequences. Energy planners are already sounding alarms. The Texas Reliability Entity, which monitors power systems, warned in June that growth tied to AI and tech hubs is placing unprecedented stress on the grid. It’s a concern that echoes back to 2021, when a winter storm knocked out power across much of the state.Cooling these facilities also demands vast amounts of water. In a region where drought conditions are worsening, and water supply is increasingly stretched, that adds another layer of strain. The Texas Tribune reports that local ecosystems may face added pressure as more cooling systems come online.
Community Impact Still Unclear
Though no immediate health risks have been confirmed, some Texas towns near industrial computing sites have reported unusual symptoms in recent years. One bitcoin mine in particular drew complaints from nearby residents. Experts say more research is needed before drawing conclusions, but the pattern is being watched.
With OpenAI’s latest move, the company joins a broader trend of tech firms racing to scale. What’s less clear is how that race will affect the communities left sharing their power lines.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
Read next: Google Signals Big Changes as Android and Chrome OS Begin to Converge
